Friday, March 18, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine

The Irrawaddy Business Roundup (March 19, 2016)

Posted: 18 Mar 2016 02:20 PM PDT

People work at the site of the Thilawa Special Economic Zone (SEZ) project at Thilawa on May 8, 2015. (Photo: Soe Zeya Tun / Reuters)

People work at the site of the Thilawa Special Economic Zone (SEZ) project at Thilawa on May 8, 2015. (Photo: Soe Zeya Tun / Reuters)

Yoma Bank, Telenor to Invest in Mobile Payments Joint Venture

Yoma Bank and Telenor are set to invest more than $8 million each over the next year in their new mobile payments joint venture, according to a company filing.

Mobile money is expected to be a growth sector as the expansion of access to mobile phone and internet services coincides with efforts to give more people access to financial services. Burma's large rural population and the large number of both internal and external migrant workers mean an affordable and convenient way to transfer funds could prove highly popular.

One of the country's largest banks and the leading private mobile phone operator, at least, seem to think it's worth a punt.

Yoma Bank's majority shareholder First Myanmar Investment is set to be the first company to list its shares on the Yangon Stock Exchange when trading opens on March 25. Alongside an announcement March 14 that it had received listing approval, FMI published a lengthy disclosure document for listing.

Among the disclosures is a section on the "strategies" of Yoma Bank going forward. While the bank's "primary focus" would be on growing loans to small- and medium-sized enterprises, the filing said, the bank would attempt to "establish internet banking."

The first digital financial product on offer is Wave Money, a service from Digital Money Myanmar, a company in which Yoma Bank holds a 49 percent stake. The remaining 51 percent is owned by three subsidiaries of Telenor Group, the Norwegian company that has raced to more than 14 million subscribers in less than two years of operations in Burma.

Testing of the Wave Money service—which promises low-cost cash transfers on your mobile phone—was announced in November, but a formal launch has not yet been held. The FMI prospectus said Wave Money should be online by the end of the current fiscal year, or March 31.

Yoma Bank will be putting money into the company over the next year, as and when it is called for, the filing said.

"Yoma Bank expects to invest all of the US$8.33 million before the end of FY 2016-2017. The other shareholders have also agreed to invest additional money in proportion to their current shareholding," it said, implying that a total of about $17 million will be pumped into Wave Money over the next year.

In a separate section that listed comprehensively the risks faced by FMI's businesses, the disclosure document noted that Wave Money faces competition from existing mobile payment services Myanmar Mobile Money, 663 Mobile Money and MyKyat, as well as other planned mobile payment services.

New regulations on the sector could also be a risk, it said.

"Digital Money Myanmar may be subject to increasing regulatory constraints, particularly with respect to money transfers," the filing said.

"There is not yet a robust regulatory framework covering mobile payments in Myanmar, and any changes to existing regulations could adversely affect Digital Money Myanmar's business, financial condition and results of operations."

Insurance Giant AIA 'Committed' to Expansion in Burma—at Some Point

Hong Kong-based insurance company AIA Group wants to enter Burma, but will wait for the country to "open up" more, the firm's chief executive told Nikkei Asian Review.

The Japan-based media outlet this week published an interview with Mark Turner, the CEO of AIA, a company that already has a significant business in Burma's neighbor, Thailand, and also plans to expand into Cambodia.

It has been estimated that Burma's insurance sector could be worth $2.8 billion by 2030. The government has begun to allow foreign insurers to operate in the country. But tight regulations on the industry, which was until recently monopolized by the state insurer, have largely kept out private insurers.

Asia's largest insurance company, AIA has had a presence in Rangoon since 2013, but at present it can only operate a representative office.

In his interview with Nikkei Asian Review on Wednesday, Tucker indicated that the firm would like to expand its operation in Burma. But he suggested that would only happen if the new National League for Democracy-led government makes the right changes.

"At the right time, when they open up, we are committed to building a business in Myanmar," Tucker was quoted as saying.

France's Accor Plans Six More Hotels in Burma

French hotel chain AccorHotels plans to open an additional six properties in Burma by 2019, the company's chief operating officer told Reuters.

The newswire reported that AccorHotels, which operates hotels globally under brands including Pullman, Novotel and ibis, was expecting strong growth in Burma because of "a low base, even as hotel numbers tripled over the past three years and revenue per available room fell 20 percent last year."

AccorHotels currently runs The Lake Garden hotel in Burma's capital, Naypyidaw, as part of its MGallery boutique brand. It also has the Novotel Inle Lake Myat Min in Shan State and the Novotel Yangon Max. The latter hotel Accor operates in a partnership with Max Myanmar, the local conglomerate owned by US-blacklisted tycoon Zaw Zaw.

Plans for a five-start Pullman hotel in Rangoon, also involving local firm Myat Min, have previously been announced.

Multimillion-Dollar Investment Planned in Thilawa Fertilizer Plant

Japan's Mitsui & Co. and Singapore-based chemicals firm Behn Meyer are set to invest $10.8 million to set up a fertilizer plant in the Thilawa Special Economic Zone (SEZ) close to Rangoon.

According to a statement, the two firms have just formed a joint Singapore-based investment company, BMM Venture. That company and Myanmar Agribusiness Public Corporation Limited (Mapco) had in turn established Agri First Co. Ltd, a Burma-based company that will manufacture and distribute fertilizer in Burma.

The company would invest about 1.2 billion Japanese yen ($10.8 million) on a plant at the Japanese government-backed trade hub Thilawa, with the capacity to produce 100,000 tons of fertilizer each year, it said.

Mapco has been touted as one of the first local firms that may list on the Yangon Stock Exchange. The statement, posted on Mitsui's website last week, said Mapco was a valuable partner for its "network with agribusiness operators" in Burma.

The companies said in the statement that they expect "rapid growth in the agricultural sector" in Burma, pointing to the country's vast area of farmland (some 2.8-times more than Japan has, the statement claims), and its suitability for double cropping.

"Fertilizer demand in Myanmar is currently just over one million tons," the statement said. "This is equivalent to only one-fifth of the level in countries with similar farmland areas and crop types, such as Vietnam and Thailand, and demand is therefore expected to grow rapidly."

State Media Says One Unlikely Export Is Booming

With total exports said to have already topped $10 billion in the current fiscal year, a tiny proportion of that may be coming from an unlikely source—human hair.

If a report carried by Burmese state media is to be believed, demand for hair in China is creating a booming cottage industry in some parts of Central Burma. The report, from Myitmakha News Agency, said employment from the hair trade was booming in villages in Pyawbwe Township, Mandalay Division.

The report did not go into detail about how donors for hair are found, or whether or not they are compensated. "The wholesalers buy the hair they sell to China from human hair traders around the country," it said.

The hair is reportedly useful for productions of "historical movies and soap operas" in China, and Burmese workers are employed to sort "bundles" of hair in their own homes.

"Human hair enterprises have provided a form of employment for local women who work to untangle and straighten 160 grams of hair between 7 am and 5 pm daily, for which they are paid a daily wage," the report said

"The business of buying and selling human hair started in Mandalay Region in 2015," it added. "There were initially just four hair wholesalers in Yindaw village, but now there are over 20 wholesalers."

The post The Irrawaddy Business Roundup (March 19, 2016) appeared first on The Irrawaddy.

Dateline Irrawaddy: ‘It’s Too Much to Label U Htin Kyaw a Puppet President’

Posted: 18 Mar 2016 01:43 PM PDT

On this week's panel, The Irrawaddy's English edition editor Kyaw Zwa Moe speaks with Aung Moe Zaw and Yan Myo Thein

On this week's panel, The Irrawaddy's English edition editor Kyaw Zwa Moe speaks with Aung Moe Zaw and Yan Myo Thein

Kyaw Zwa Moe: Welcome to Dateline Irrawaddy. Tuesday morning the first civilian president [in over 50 years] was elected in Myanmar. His name is U Htin Kyaw. Over the past 54 years, the generals and ex-generals of the military have dominated the country. This moment marks a historic moment for Myanmar. So we'll discuss the challenges facing U Htin Kyaw's government in the new political landscape. Chairman of the Democratic Party for a New Society U Aung Moe Zaw and political commentator Ko Yan Myo Thein will join me for the discussion. I am Irrawaddy English editor Kyaw Zwa Moe.

This morning, we watched the selection of our new president on television. U Htin Kyaw is the first pure civilian president in 54 years, nominated by the National League for Democracy [NLD], whom the people voted for in November. So it's fair to say he represents the people.

How do you feel?

Aung Moe Zaw: [I was so excited] I couldn't hold back my tears as I watched [the television].  It was exciting and encouraging. I believe it will be a milestone in the country's history.

KZM: How about you, Ko Yan Myo Thein? What else do you want to say?

Yan Myo Thein: This is an extremely exciting moment for all Myanmar people, including us. Teashops in Yangon turned to the Hluttaw [Parliament] channel, and many people watched the presidential selection like they would a football match. The sight gave me goosebumps.

KZM: U Htin Kyaw's government will be formed next week. Many people, especially political analysts abroad, have dubbed U Htin Kyaw a 'puppet government.' But most Myanmar people aren't happy with such judgment. Analysts have said this because Daw Aung San Suu Kyi said in the post-election period that she would be "above the president." Under such circumstances, what is your take on U Htin Kyaw's role as the president?

AMZ: It's too much to label U Htin Kyaw a puppet president, considering his academic qualifications, background, work history and dedication to democracy. One thing for sure is that he is a member of the NLD and has to be accountable to the NLD, as well as to its leadership. He has to lead both daily tasks and administrative work. Daw Aung San Suu Kyi will likely only take on the role of giving advice, negotiating and cooperating [with U Htin Kyaw], I think.

KZM: Recently, regional newspapers have written that he would be the puppet president and that Daw Aung San Suu Kyi would be above him. Daw Aung San Suu Kyi holds the party chairpersonship and, surely, people have voted for her party because they trust her. So people were already prepared to accept whomever she selected to be president. U Htin Kyaw has to take responsibility for the day-to-day functions of the government, and he will have the executive power to do so. How much will he and Daw Aung San Suu Kyi need to work together?

YMT: Daw Aung San Suu Kyi is chairwoman of the NLD. The entire nation overwhelmingly voted for her in the 2015 election, handing her the mandate to lead the country. Though she is constitutionally barred from the presidency, people would support the one selected by her party. As far as I understand, U Htin Kyaw is an educated person, participated in democracy struggles, and has made sacrifices and is a person of high caliber. I therefore honestly believe that he will be a president superior to any of his predecessors since 1962.

KZM: The rank U Htin Kyaw holds now is equivalent to a CEO of a business. And Daw Aung San Suu Kyi would be chairperson of that company, right? The CEO himself can make decisions on his own on many occasions. But the problem is about the two vice presidents. There was some criticism of the two—U Myint Swe, the current Rangoon chief minister, and U Henry Van Thio, an NLD member who had served as a major in the service. There was strong criticism about the selection of U Myint Swe. He is believed to have close ties with former Sen-Gen Than Shwe. Was he really selected by the military or tipped by the former senior general? And if he was tipped by the former senior general, what political problems may arise?

AMZ: Most people, including us, don't like U Myint Swe. He is responsible for [the brutal Rangoon crackdown during] the Saffron Revolution [in 2007]. Again, he has done nothing over the past five years. What's worse, he is also among the responsible persons for the red armbands [vigilantes who attacked students protesting against the National Education Law]. So people and activists don't like him. But they can do nothing, as he has been selected by the military. There is also talk that the former senior general played a part. I assume that that talk is true.

KZM: The president is selected by the NLD. But there are problems with how the vice president is selected by the military, according to the Constitution. In any country, the president and vice president have to work together, and the vice president has to always adhere to the policy of the president. But given the circumstances, there is little likelihood of this happening in our country. Instead, the [militarily appointed] vice president may resist attempts by the president and the ruling party.  If he was deliberately selected [by the military] to his post for that purpose, how much will it impact the transition?

YMT: The fact that Rangoon Chief Minister U Myint Swe was selected by the military as vice presidenct indicates that former Sen-Gen Than Shwe maintains influence over the military. And it indicates the close relationship between the military and the Union Solidarity and Development Party [USDP]. But I'm satisfied with one thing: According to the Constitution, the president has the power to assign duties to two vice presidents. And he can change their duties at any time. And according to the Constitution, the vice presidents are responsible to the president, and to the Union Parliament through the president. Therefore, even if disagreement arises during the current Parliament's term, it needs to be resolved with them democratically.

KZM: Some say that the vice president selected by the military is a hardliner. The military also holds three important minister positions in the cabinet and six positions on the National Security and Defense Council. Under such circumstances, U Htin Kyaw's government—

YMT: There will be a lot of challenges.

AMZ: I agree with what Ko Yan Myo Thein has said. The president has a considerable level of power, according to the Constitution. It would be quite difficult for the two vice presidents to obstruct the president.

KZM: The Constitution does not allow them to do so.

AMZ: Yes, constitutionally, it would be very difficult for them. So they have to follow the president's instructions. But then [the president] has to make sure to get along with the military or reach some sort of agreement with it. The role of the president is relatively bigger than that of the vice president. Daw Aung San Suu Kyi, I think, will keep trying to negotiate with the military, especially the commander-in-chief and military leadership. As Ko Kyaw Zwa Moe has already said, only with the current government, Parliament, political parties, ethnic groups, military and ethnic armed groups working in harmony with a high level of trust and understanding will we be able to lay the foundation [for development] in the next five years.

KZM: There is also criticism of another vice president, selected by the NLD, U Henry Van Thio. Daw Aung San Suu Kyi has talked about equality. She has selected an ethnic person to make sure equal rights between [majority] Burman and non-Burman people. Some seem to be concerned that an inclusive government, or a government of national reconciliation, can't be formed. How should the NLD and U Htin Kyaw form their government?

AMZ: We welcome the newly elected president and have trust in his abilities. We think he will be able to lead [the country] well. But the selection by the NLD of U Henry Van Thio is a little bit controversial, I think. We heard that he joined the party not long ago, and he is not well-known, even in the Chin political community. Given this, we are a little concerned about the next cabinet. There are people [with high capability] who have worked 20 to 30 years with them [the NLD]. There are many skilled persons from the Shan Nationalities League for Democracy [SNLD], ZNC [Zomi Congress for Democracy], Mon and even the NLD. I want to see a combination of such people: excellent politicians and military representatives and others.

KZM: Technocrats shouldn't also be included in the government?

YMT: I like that the vice presidency is given to an ethnic person, but it would be better if the vice president elected during democratic transition is as clean as he can be. As Ko Aung Moe Zaw has said, it is important that really capable people lead the government. In addition to the central government, the division and state governments should also be led by such capable people. He [U Henry Van Thio] will have to face various tests over the next five years. Therefore, I have some concern.

AMZ: And the cabinet members should be politically oriented, and should be politicians. As for technocrats or academics, they have their own role to play in nation-building. The cabinet can assign them properly.

YMT: A system in which ministers give political leadership—

AMZ: Yes, I hope it happens in our country.

KZM: We've now switched to a new political order. What do you expect to see?

AMZ: I think we will be able to achieve [genuine] democracy quickly.

YMT: I would like to urge government officials to build a corrupt-free administration that works for the interests of the people.

The post Dateline Irrawaddy: 'It's Too Much to Label U Htin Kyaw a Puppet President' appeared first on The Irrawaddy.

Buddhist Nationalist Monks to Protest Christian VP-Elect

Posted: 18 Mar 2016 08:10 AM PDT

Vice President-elect Henry Van Thio, of Chin State and the NLD. (Photo: Ye Ni / The Irrawaddy)

Vice President-elect Henry Van Thio, of Chin State and the NLD. (Photo: Ye Ni / The Irrawaddy)

RANGOON — A group of nationalist Buddhist monks and supporters are preparing to protest the National League for Democracy (NLD) for appointing a Christian vice president-elect this month.

The group, called Buddha Gonyi, claims to be a protector of the Buddhist religion. Its leader, Ashin Aggadhamma, told The Irrawaddy that his members have already asked a police station in Rangoon's Bahan Township for permission to stage the protest.

The NLD chose Henry Van Thio, an ethnic Chin Christian, as a vice presidential nominee last week, and this week Parliament confirmed him for that post. He will be the first Christian vice president in the majority-Buddhist country.

Ashin Aggadhamma, who will lead the protest, offered a nuanced or perhaps merely perplexing explanation for the group's objection to Van Thio: "We aren't protesting because he is Christian. Our country is Buddhist; 80 percent of the population is Buddhist. That is why we are against the NLD appointing a Christian vice president."

He said his group is worried about future violence if the Christian vice president were ever put in a position to run the country.

Once the group receives permission from the police in Bahan Township, where the NLD headquarters is located, its members will launch a protest to show the party their disapproval.

"It is a democratic system," he said. "As a democracy, the NLD will have to listen to the voice of the people."

Buddhist nationalists have made headlines in recent years as an unfolding democratic transition has allowed for greater freedom of expression, most often for anti-Muslim rhetoric, but also late last year following a highly charged trial in Thailand that saw two Burmese Buddhist migrant workers convicted in a controversial double murder case.

The post Buddhist Nationalist Monks to Protest Christian VP-Elect appeared first on The Irrawaddy.

Su Su Lwin: Not ‘The’ Lady, but Rather Burma’s Next ‘First’ Lady

Posted: 18 Mar 2016 07:52 AM PDT

Su Su Lwin seen at the Union Parliament on Friday. (Photo : Myo Min Soe / The Irrawaddy)

Su Su Lwin seen at the Union Parliament on Friday. (Photo : Myo Min Soe / The Irrawaddy)

RANGOON — The world knows Burma for its Noble laureate, Aung San Suu Kyi. "The Lady" is a prominent political figure and leader of the pro-democracy movement who spent years under house arrest. But the people of Burma have a new lady in the spotlight now, the country's incoming first lady, Su Su Lwin.

But who is Su Su Lwin?

Before her husband, Htin Kyaw, became Burma's president-elect, people knew Su Su Lwin as the chairwoman of the Lower House's International Relations Committee and head of the education committee in Suu Kyi's National League for Democracy (NLD). She helped drafted the controversial National Education Bill, which in 2015 resulted in nationwide student protests. But her relationship with Suu Kyi and the NLD goes much deeper than that.

Even though the 63-year-old former educator wasn't a party member when the NLD was founded in the late 1980s, she was no stranger to the party. Her late father U Lwin was a former colonel in the Burma Army and a leading figure in the NLD, which he helped found and later served as party treasurer. As U Lwin's daughter, she witnessed the birth of the NLD.

At that time, Su Su Lwin had a post-graduate diploma from Sydney University, a master's degree in English from the Rangoon Institute of Education and had worked for over 10 years at Burma's education research bureau.

Suu Kyi took notice of Su Su Lwin's education background and asked her to teach English to NLD youth members at her home, after all schools and universities across the country were closed following the 1988 pro-democracy uprising.

According to Zaw Aung, an independent social researcher who was then an NLD youth member and a student of Su Su Lwin's, there were about 20 students in the NLD English class. They were all student activists who had been involved in the 1988 demonstrations and later joined the NLD.

He remembers her as a "great teacher" who was very passionate about education.

Su Su Lwin SECONDARY

An illustration of Su Su Lwin. (Artist: KMoe Ko)

"Her teaching methods were different from any others I had ever received in my life," he told The Irrawaddy on Wednesday.

For Zaw Aung, Su Su Lwin's student-centered approach was a new experience. The classroom was fun and interesting because Su Su Lwin was always friendly, lively and patient with the students, he said. She taught them not only language skills, but also used English novels and short stories to teach them critical thinking.

But after less than six months, the class had to stop when Suu Kyi was put under house arrest in July 1989. Su Su Lwin told her students to come to her home instead if they still wanted to learn from her. But former student Zaw Aung was also imprisoned and spent 10 years in jail.

Su Su Lwin's commitment to education was noticeable to everyone around her. Suu Kyi's former personal assistant, Dr. Tin Mar Aung, echoed Zaw Aung's opinion.

"She is always so eager to share what she knows with others," she said.

Su Su Lwin and Dr. Tin Mar Aung worked together at Unicef for about a decade, where they became close friends. She portrayed Su Su Lwin as a caretaker who treated everyone around her like family. They each have an intimate relationship with Suu Kyi and sometimes spent time together at Suu Kyi's house talking about cooking and books, she said.

Before getting involved in politics, Su Su Lwin invested most of her time in the education sector. She worked for Unicef from 1990 to 2005 and later served as a freelance consultant for monastic education programs.

She founded a local non-profit organization called Hantha Educators in 2006 that partnered with local influential monks and focused on improving traditional monastic education, early childhood care and development programs. She was concerned about the lack of education opportunities for the poor, especially in Sagaing Division and Arakan State, and the failure of many development programs to reach those most in need. Her organization stressed the importance of child-centered teaching and critical thinking.

Her former student, Zaw Aung, crossed paths with her again after his release from prison, when they both worked at Unicef and then at Hantha Educators. Zaw Aung remembers her being a vegetarian and her tendency to bring vegetarian meals to her office for colleagues.

"She knows how to cook vegetables deliciously," he said.

Zaw Aung said she was kind and modest, despite growing up in an elite family, with a father who served as a minister during Gen. Ne Win's socialist regime.

"[Su Su Lwin and Htin Kyaw] supported Daw Aung San Suu Kyi closely, in their own different ways," he said. "And in every possible way."

"They were two of Daw Aung San Suu Kyi's most trusted confidantes."

She married Htin Kyaw in 1973 when she was 21-years-old. According to a 2007 interview with Htin Kyaw in local art magazine "Padauk Pwint Thint," Su Su Lwin was even more familiar with Htin Kyaw's father, the prominent Burmese poet Min Thu Wun, because she had translated some of his poems into English.

Despite her close relationship with Suu Kyi, she told The Irrawaddy that she officially became a NLD party member just before the 2012 by-election, when she won a seat along with dozens of fellow party loyalists. She dived into Burmese politics before her husband, and has represented Rangoon's Thone Kwa constituency in Parliament ever since her 2012 victory, winning re-election to the seat last year.

While working for Unicef, she was not supposed to show any political affiliation, so she avoided being in the public eye. But as the daughter of U Lwin, she witnessed every change and development of the NLD, Zaw Aung said.

"It's remarkable that not only the president-elect, but also the first lady, played historic roles in assisting Daw Aung San Suu Kyi," he added. He believes that Su Su Lwin can be more than a first lady.

Given her proven independent streak, passion for worthy causes and dedication to country, Burma's next first lady promises to be a trailblazer in her own right, breaking a mold set by recent predecessors at a time of countless firsts in a democratic transition that continues to unfold.

Additional reporting by Kyaw Phyo Tha and Sandy Barron.

The post Su Su Lwin: Not 'The' Lady, but Rather Burma's Next 'First' Lady appeared first on The Irrawaddy.

KBZ Bank, Army-Run Companies Among Top Corporate Tax Payers

Posted: 18 Mar 2016 06:01 AM PDT

KBZ Bank's head office is seen at Pyay Road in Rangoon on March 14, 2012. (Photo: Soe Zeya Tun / Reuters)

KBZ Bank's head office is seen at Pyay Road in Rangoon on March 14, 2012. (Photo: Soe Zeya Tun / Reuters)

RANGOON — According to Burma's Internal Revenue Department, Kanbawza (KBZ) Bank tops the list of corporate tax payers for 2014-15, along with army-owned companies.

The department on Friday identified online the names of the country's top 50 tax-paying companies, saying it would release the rest of a top-1,000 list on its website at a later date. Banks are well-represented on the list, making up five of the top 50 tax-paying companies.

KBZ Bank paid 22 billion kyats ($18.1 million) in taxes for 2014-15, securing the No. 1 spot. This is more than double the figure of the second-place company on the list, Myawaddy Bank, which paid less than 10 billion kyats. The top five was rounded out by Denko Trading Company, Myawaddy Trading Company and Union of Myanmar Economic Holdings Limited (UMEHL) in third, fourth and fifth, respectively. Myawaddy Bank, Myawaddy Trading Company and UMEHL are run by the military.

Nyo Myint, senior managing director of the KBZ Group of Companies, told The Irrawaddy that this is fourth time that KBZ Bank has topped the list.

"The tax amount grows each year as we offer more services, products and customers, and I hope that these amounts will only continue to increase next year," Nyo Myint said.

Founded in the 1990s in Taunggyi, the capital of Shan State, and owned by Aung Ko Win, the KBZ Group of Companies owns one of Burma's largest banks and also has business interests in several other sectors. Crucially, it is not on the US Treasury Department's blacklist, unlike a number of other large conglomerates in Burma. Aung Ko Win's name did appear for a time on the Australian and European Union's sanctions lists, targeted for his ties to Burma's former military regime, but he was removed shortly after the government of President Thein Sein assumed power in 2011.

Shwe Taung Development Company, ranked 12th, was the sole construction company to be included in the top 20. The rest are banking and trading companies. The well-known Asia World Company, led by US-blacklisted Steven Law, also known as Tun Myint Naing, came in at No. 22.

The Internal Revenue Department has said previously that its tax collection methods are improving and that government revenues generated from taxes are increasing.

The post KBZ Bank, Army-Run Companies Among Top Corporate Tax Payers appeared first on The Irrawaddy.

Lawmakers Speak Favorably of Proposed Cabinet Cuts

Posted: 18 Mar 2016 05:25 AM PDT

Recently voted Burma's president-elect, Htin Kyaw sat in on his first Union Parliament session in that role on Friday in Naypyidaw. (Photo: Myo Min Soe / The Irrawaddy)

Recently voted Burma's president-elect, Htin Kyaw sat in on his first Union Parliament session in that role on Friday in Naypyidaw. (Photo: Myo Min Soe / The Irrawaddy)

RANGOON — Lawmakers on Friday voiced support for a reduction in ministries comprising Burma's incoming government, saying the proposal recently put forward by President-elect Htin Kyaw would save billions of kyats from the annual state budget.

On Thursday, Htin Kyaw of the National League for Democracy (NLD) submitted a proposal to Parliament to reduce the executive's cabinet from its current 36 ministries to 21, including one new proposed ministry covering "ethnic affairs." Under his proposal, 10 existing ministries are removed while some would be subsumed into others, with 10 ministries merged into five.

Five parliamentarians took to the floor of the legislature on Friday to voice support for the proposal, which they said would save "thousands of millions" of kyats, or hundreds of thousands of dollars, on salaries for ministers, their deputies and related expenses. The proposed eliminations and mergers would also establish an executive branch that was more efficient and compact, supporters said.

"I agree with the proposal as it will reduce the ministries, which number too many. We can save state funds, which can be applied in places requiring them," said Je Yaw Wu, an Upper House lawmaker from Kachin State representing the National Unity Party (NUP).

"Since each ministry will cover all related operations and there won't be separated branches by merging related ministries, the work will be done faster, in one-stop service [fashion], and the departments wouldn't be able to act like they were playing volleyball [with responsibilities] as before," Je Yaw Wu told lawmakers in Parliament.

The 15 ministers and their deputies in the ministries slated for elimination draw a combined annual salary of 900 million kyats ($750,000), assuming only one deputy per ministry—though some ministries in the current government have more. With other allocated expenditures for these officials, such as transportation, assistants' salaries, maintenance of vehicles and other costs, savings would be in the billions, Je Yaw Wu said.

Currently, ministers are paid 3 million kyats per month, while their deputies earn 2 million kyats.

Four other lawmakers discussed the proposal during Friday's session, backing the reductions as well as creation of the proposed Ethnic Affairs Ministry.

"Though an 'Ethnic Affairs Ministry' is a new one, it is very important for national reconciliation and ethnic lawmakers were pushing that for a long time," Je Yaw Wu said.

Ba Shein from the Arakan National Party (ANP) also supported the proposal, and asked for an explanation on which of the newly configured ministries would take on the portfolios of the existing Ministry of Mines, Ministry of Cooperatives, Ministry of Sports and Ministry of Science and Technology, which are not on the proposed list.

Htin Kyaw will explain his proposal during an upcoming parliamentary session on Monday, when he is expected to seek lawmakers' approval.

A reduction of government ministries was one pledge put forward in the NLD's election manifesto, "in order to decrease government expenditure and establish a lean and efficient government."

The proposal submitted to Parliament did not provide information on expected savings, or offer details on how the administrative shakeup would play out. The NLD has previously sought to assuage concerns that the structural reforms would lead to significant redundancies among the ranks of Burma's civil servants.

A senior NLD member said early this year that the party was still mulling whether to eliminate the post of deputy minister in the ministries it put forward this week.

The post Lawmakers Speak Favorably of Proposed Cabinet Cuts appeared first on The Irrawaddy.

NLD-Led Group on Parliamentary Capacity-Building Meets Int’l Actors

Posted: 18 Mar 2016 04:31 AM PDT

A parliamentary affairs coordination group led by NLD chairwoman Aung San Suu Kyi holds a meeting with representatives of international organizations and embassies on Thursday in Naypyidaw. (Photo: NLD Chairperson Office / Facebook)

A parliamentary affairs coordination group led by NLD chairwoman Aung San Suu Kyi holds a meeting with representatives of international organizations and embassies on Thursday in Naypyidaw. (Photo: NLD Chairperson Office / Facebook)

RANGOON — An Aung San Suu Kyi led-coordination group for parliamentary development held a meeting with representatives of several international organizations and embassies on Thursday at Naypyidaw's Lower House compound, according to the National League for Democracy (NLD) chairperson's office.

The main responsibility of the working group, which was formed last week, is to emphasize capacity-building for lawmakers and parliamentary staff, in coordination with international actors.

The sitting Parliament, convened on Feb. 1, is dominated by the NLD, which scored a landslide general election victory on Nov. 8.

The team met Thursday with delegations from foreign embassies, the World Bank, Hans Seidel Foundation, British Council, Asia Foundation, European Union, Japan International Cooperation Agency (JICA), Thabyay Education Foundation and Myanmar Scholarship Alumni Association.

The coordination group is chaired by NLD leader Suu Kyi and lawmaker Zeyar Thaw, also of the party and representing Naypyidaw's Zabuthiri constituency. The working group includes three directors-general from parliamentary offices, two other NLD lawmakers and one from the formerly ruling Union Solidarity and Development Party (USDP) as members.

The post NLD-Led Group on Parliamentary Capacity-Building Meets Int'l Actors appeared first on The Irrawaddy.

Peace Stakeholders Soul-Searching With MPC’s Fate in Limbo

Posted: 18 Mar 2016 04:20 AM PDT

The outgoing government's chief peace negotiator Aung Min and National League for Democracy leader Aung San Suu Kyi meet in her office in Naypyidaw on Dec. 7, 2015. (Photo: NLD Chairperson / Facebook)

The outgoing government's chief peace negotiator Aung Min and National League for Democracy leader Aung San Suu Kyi meet in her office in Naypyidaw on Dec. 7, 2015. (Photo: NLD Chairperson / Facebook)

The National League for Democracy's failure to articulate a clear plan for the Myanmar Peace Center's future has its staff dusting off résumés, pledging fealty to the incoming administration or, in the case of the outgoing government's lead peace negotiator, eyeing a role "outside" the official dialogue.

While peace process stakeholders largely agree that the status of the MPC will be decided by NLD chairwoman Aung San Suu Kyi, there is no such certainty about the institution's fate over the years to come.

In an interview with The Irrawaddy in Chiang Mai, Thailand, Hla Maung Shwe, a senior advisor at the MPC, a government-affiliated organization that brings together government and ethnic leaders for negotiations, said Suu Kyi has not yet made clear how the organization will function in Burma's changing political climate.

"When we met her [Suu Kyi], she said three things about the MPC: First, she appreciated what the MPC has done. Second, she will keep the MPC. And third, she will have to review all of the work that [the organization] has done," Hla Maung Shwe said.

Some observers, however, predict that there will be major changes within the MPC, particularly when it comes to deciding which members will be dismissed and which members might be integrated into a new peace organization led by Suu Kyi.

Tun Tun Hein, an executive committee member of the NLD, told The Irrawaddy on Friday: "We will not abolish the MPC, but we will have to reform it in the future."

"All of the [necessary] people will find out about these reforms when the time comes."

He assured members of the United Nationalities Federal Council (UNFC), an alliance of nine ethnic groups that have so far opted out of signing the Oct. 15 "nationwide" ceasefire with the outgoing government, that they would have a seat at the negotiating table in an NLD-led dialogue, whatever form that might take.

Aung Min, MPC chairman and the outgoing government's lead negotiator, said he would split from the center and form a think tank-style organization that focuses on peace and development in the region.

"I'll be supporting from the outside," Aung Min told The Irrawaddy during a meeting last month in Chiang Mai with leaders from ethnic armed groups. "For peace-building to be sustained, we ought to start thinking about development. When I form [a new] foundation, I am thinking of naming it the Peace and Development Foundation. I could work on peace issues while also focusing on regional development."

A BBC report, quoting a senior MPC member, has claimed that Aung Min is applying for a license at the Home Affairs Ministry and plans to open his new office in downtown Rangoon.

Min Zaw Oo, director of the MPC's ceasefire negotiation and implementation department, told The Irrawaddy that as the organization goes through its own transition, some members will pursue different tasks within the MPC, while some may leave altogether.

"All individuals can decide freely. As of right now, I don't know whether or not I'll continue at the MPC. I'll help whoever comes to power. I'll help the NLD when it comes to power," Min Zaw Oo said, adding that the NLD had not officially contacted him about a job offer. However, he said that it was unlikely that he would join Aung Min's new organization.

Sources familiar with the MPC say Western donors such as the European Union (EU) will halt financial support of the MPC at the end of March until Suu Kyi makes a decision on the center's fate.

The MPC, launched in 2012 as a part of an agreement with the Norway-led Peace Support Donor Group, marks one of the EU's earliest re-engagements with Burma after the ruling military junta transferred power to a quasi-civilian government in 2011.

The Irrawaddy reporter Kyaw Kha contributed to this report.

The post Peace Stakeholders Soul-Searching With MPC's Fate in Limbo appeared first on The Irrawaddy.

NLD Leadership Irked By Media’s Htin Kyaw ‘Driver’ Gaff: Source

Posted: 18 Mar 2016 04:09 AM PDT

Burma's President-Elect Htin Kyaw (left) at the Union Parliament on Friday. (Photo: Myo Min Soe / The Irrawaddy)

Burma’s President-Elect Htin Kyaw (left) at the Union Parliament on Friday. (Photo: Myo Min Soe / The Irrawaddy)

RANGOON — According to a long-time National League for Democracy (NLD) member close to chairwoman Aung San Suu Kyi, international news outlets' incorrect branding of President-elect Htin Kyaw as her "former driver" is reminiscent of press from a darker era in Burma's history.

After Htin Kyaw's nomination for the presidency by the NLD in Parliament on March 10—for which he was officially selected the following week—international outlets including the Agence France-Presse wire service, CNN and the UK's Telegraph all published headlines and content referring to him as Suu Kyi's personal driver.

In reality, Htin Kyaw is a writer and an executive member of a Suu Kyi-led charity.

The NLD source wished to remain anonymous since the party's official spokesperson was not available for comment, but he told The Irrawaddy that the reference caused embarrassment to senior members of the NLD, including the chairwoman.

"It is inappropriate to mention the country's president as a driver," he told The Irrawaddy on Wednesday. "The media shouldn't write as [they] like. The way [they] write pisses off the leadership," he added.

It should be noted that before his name was put forward for the presidency, Htin Kyaw was relatively unknown in Burma's political scene, leading news outlets to scramble for biographical details in the wake of his nomination; the NLD did not release a statement on his personal background until about six hours after the announcement, by which time, errors had already become widespread.

The sting felt by party members over the incorrect label can perhaps be traced back to stories written over 15 years ago, when Htin Kyaw found himself on the receiving end of harsh words by Burma's own military regime.

The NLD source said that articles written by the country's military intelligence in the early 2000s reportedly also described Htin Kyaw's role as that of a "driver." At that time, the role was offered in an attempt to discredit him "as he sometimes drove for [Suu Kyi]," he explained.

In another article published by government mouthpiece The Mirror in September 2000, Htin Kyaw was referred to by the offensive and derogatory Burmese term "nga ti" for his role in supporting the NLD.

During the period of military rule, the Burmese regime carried out a sustained media attack on Suu Kyi and her party, labelling them "destructive elements" attempting to "disintegrate national solidarity and the Union."

Led by the former Gen. Khin Nyunt until he was purged from the position in 2004, Burma's military intelligence was notorious for its crackdowns on political opponents and human rights activists, sentencing them to lengthy stints in prison, which many did not survive.

The post NLD Leadership Irked By Media's Htin Kyaw 'Driver' Gaff: Source appeared first on The Irrawaddy.

Makeover of Mandalay’s Golden Palace Monastery Continues

Posted: 18 Mar 2016 02:11 AM PDT

Click to view slideshow.

MANDALAY — After several months of delays, restoration work on Mandalay's Golden Palace Monastery, one of the city's ancient sites, resumed on Thursday.

Repairs will begin in the southern part of the building by replacing the decayed, century-old teak wood columns along the balcony, as work to fix the flooring.

According to the New York-based World Monuments Fund (WMF), which is heavily involved with the restoration efforts of the Golden Palace Monastery, about 20 columns need complete replacement, while others need only partial repair. New teak logs from Karenni State were chemically treated so that they would be protected from both weather and termites.

Founded over 50 years ago, the WMF joined with Burma's Ministry of Culture in 2013 to preserve the 19th-century teak wood monastery, also known Shwe Nan Daw Kyaung.

The monastery was once a royal chamber of King Mindon, who reigned from 1853 until 1878, and was covered with gold leaf and glass mosaics and adorned with intricate woodcarvings. After King Mindon passed away, his son, King Thibaw, moved the chamber out of the palace compound and transformed it into a monastery for fear that the king's spirit might haunt the building.

Unlike most historical buildings in Mandalay, the Golden Palace Monastery survived aerial bombardment during World War II, and is the only original structure of the former royal palace which remains.

The post Makeover of Mandalay's Golden Palace Monastery Continues appeared first on The Irrawaddy.

UN Agencies Report Continued Food Insecurity In Post-Disaster Areas

Posted: 17 Mar 2016 11:14 PM PDT

An aerial view of a flooded village in Kalay Township, Sagaing Division, on August 2, 2015. (Photo: Soe Zeya Tun / Reuters)

An aerial view of a flooded village in Kalay Township, Sagaing Division, on August 2, 2015. (Photo: Soe Zeya Tun / Reuters)

RANGOON — The Food and Agriculture Organization (FAO) and the World Food Program (WFP), both UN agencies, released a statement on Thursday revealing that rural communities in western Burma are still enduring increased levels of food insecurity, particularly in areas recovering from natural disasters.

Though it has been more than seven months since Cyclone Komen struck Burma, malnutrition and poverty continue to affect people in the hardest-hit areas of Chin and Arakan states, "highlight[ing] their vulnerability to withstand similar emergencies in the future," according to the statement.

The FAO and WFP are concerned that populations in these areas will require relief assistance in the coming months "to ensure long-term recovery" due to severe food shortages. Severe flooding in the region has also led to an increase in malnutrition in areas of Arakan and Chin states where children were already malnourished. In the report, the FAO and WFP recommend that assistance be provided in the form of cash or vouchers to contribute to the purchase of food.

The statement added that Arakan State and Sagaing Division in particular have suffered a loss of livestock and damage to fisheries, including 23,000 hectares of shrimp ponds. This has destroyed livelihoods and also contributed to malnutrition by eliminating traditional protein sources.

According to the 2015 Crop and Food Security Assessment Mission (CFSAM) on which the report is based, the national impact of natural disasters on crops was limited. Yet in Arakan and Chin states, paddy production could decrease by up to 15 percent this year, meaning there will be less rice available and the rice that reaches market will be sold at a higher cost.

"In addition to the urgent rebuilding of livelihoods through the provision of crop seeds, livestock, the rebuilding of fishing gear and boats as well as the rehabilitation of fish and shrimp ponds, we are also ensuring a focus on longer term interventions which enable farmers and communities to better cope with future emergencies," said Bui Thi Lan, Burma's FAO representative, in the statement.

Since August of last year, the WFP reports that they have been implementing flood relief measures in Burma and have reached 500,000 people affected by the natural disaster. They expect to continue their efforts until mid-2016, yet the UN agency also states that they are US$47 million short of being able to meet all food assistance needs in Burma until the end of the year.

The post UN Agencies Report Continued Food Insecurity In Post-Disaster Areas appeared first on The Irrawaddy.

Exiled Tibetans Elect Leader to Sustain Dalai Lama Legacy

Posted: 17 Mar 2016 10:27 PM PDT

A young Tibetan monk holds a portrait of their spiritual leader, the Dalai Lama, during celebrations marking his 80th birthday anniversary in the northern hill town of Dharamsala, India, on July 6, 2015. (Photo: Reuters)

A young Tibetan monk holds a portrait of their spiritual leader, the Dalai Lama, during celebrations marking his 80th birthday anniversary in the northern hill town of Dharamsala, India, on July 6, 2015. (Photo: Reuters)

DHARAMSALA / NEW DELHI, India — Tens of thousands of exiled Tibetans across India and overseas will vote on Sunday to elect a political leader, hoping the democratic exercise will help sustain their struggle to secure complete autonomy for Chinese-ruled Tibet.

The second election of its kind follows a decision by the Dalai Lama, the 80-year-old Nobel Peace Laureate, to relinquish his political authority and vest it in a democratic system that could outlive him.

Concern about the globetrotting spiritual leader's health, after his admission to a US hospital this year for treatment, has reinforced the importance of the vote to keeping the issue of Tibet alive.

The "Sikyong," or elected leader, will be solely responsible for political and diplomatic decisions, as the charismatic monk steps back from the limelight amid uncertainty over how his successor will be chosen.

Tibetan Buddhism holds that the soul of a senior lama is reincarnated in the body of a child after he dies. China says it must sign off on the reincarnation of the Dalai Lama, who fled into exile in 1959 after a failed uprising.

"Even if China tries to select the next Dalai Lama, the Tibetans will continue to have an elected leader who is outside the Communist Party's grip," said P.D. Mukherji, professor of Chinese studies at Jawaharlal Nehru University in New Delhi.

The contest will decide who leads the parliament of the Central Tibetan Administration (CTA) in Dharamsala, a town in India's Himalayan foothills where a community of Tibetans lives in exile with the Dalai Lama.

"China will see that CTA is going to stay here for a long time and the Tibetan freedom struggle will be here for a long time," incumbent Lobsang Sangay, who is seeking re-election, told Reuters.

Exiled Tibetans consider the CTA to be their legitimate government, but no country recognizes it. China has lobbied to sideline the Dalai Lama from the international circuit, although he did address an audience in Geneva last week despite those efforts.

Freedom Struggle

The elected leader will have to rally global support for Tibet's campaign for freedom, strengthen ties with India and discourage self-immolation by refugees when protesting against Beijing's ironclad control of the Himalayan region.

This month, a Tibetan schoolboy died in India after setting himself on fire to protest against Chinese rule in Tibet.

Sangay and his opponent, Penpa Tsering, both favor the "middle way" propagated by the Dalai Lama for more than 50 years that advocates non-violence while seeking autonomy for Tibet.

Representatives of the Dalai Lama held several rounds of talks with China up to 2010, but formal dialogue stalled amid leadership changes in Beijing and a security crackdown in Tibet.

One candidate who called for independence from China lost in preliminary elections held in 2015, as voters felt that opposition to Beijing would only undercut international support for, and weaken the economic condition of, exiled Tibetans.

Asked to comment on the leadership election, Chinese foreign ministry spokesman Lu Kang said Beijing did not recognize the "so-called government in exile."

"We hope that any country, especially those which want to have good relations with China, [does] not provide any convenience or platform to any so-called Tibet independence activities of anti-China separatists," Lu told a news briefing.

The post Exiled Tibetans Elect Leader to Sustain Dalai Lama Legacy appeared first on The Irrawaddy.

China to Push Burma’s New Government on Stalled Myitsone Dam

Posted: 17 Mar 2016 10:14 PM PDT

Myitsone

Burmese living in Malaysia display placards in protest against the China-backed Myitsone dam project, outside the Burmese Embassy in Kuala Lumpur in September 2011. (Photo: Reuters)

BEIJING — China signaled on Thursday that it will push Burma's new government to resume a controversial stalled dam project in the Southeast Asian country, saying the contract was still valid.

Outgoing Burmese President Thein Sein angered Beijing in 2011 by suspending the $3.6 billion, Chinese-invested Myitsone dam project, some 90 percent of whose power would have gone to China.

Other Chinese projects in Burma have proved controversial too, including the Letpadaung copper mine, against which residents have repeatedly protested, and twin Chinese oil and gas pipelines across the country.

Speaking ahead of a summit next week in China between Premier Li Keqiang and leaders of five Southeast Asian countries, Chinese Vice Foreign Minister Liu Zhenmin said the Myitsone dam was an "important cooperation project."

"Very regretfully it was shelved by the Myanmar government in 2011. But the contract is still in force. How to push this cooperation forward is an important thing for both countries," he told a news conference.

"I think that the existing government has no time to get this project restarted. I believe that once the new government is in office, the Chinese government will continue to discuss with them how to restart this project."

He said he did not yet know who exactly would be representing Burma's government at the summit on the southern Chinese resort island of Hainan.

Burma's Parliament elected a close friend and confidant of Nobel laureate Aung San Suu Kyi as president on Tuesday, making Htin Kyaw the first head of state since the 1960s who does not hail from a military background.

Chinese diplomats have been quietly approaching senior officials in Suu Kyi's National League for Democracy (NLD) about the dam, senior NLD sources have told Reuters.

While Beijing had strong ties with Burma's military junta, it has also moved to cement relations with Suu Kyi, who met Chinese President Xi Jinping in Beijing last year.

China's Foreign Ministry, in a statement late on Wednesday, said Xi had sent his congratulations to Htin Kyaw.

Xi said the two countries had a long tradition of friendship and deepening cooperation was in the interests of both parties.

"China is willing to work hard with Myanmar to promote the continued steady development of the all-round strategic cooperative relationship to better benefit both peoples," Xi added.

The post China to Push Burma's New Government on Stalled Myitsone Dam appeared first on The Irrawaddy.

Vietnam’s Southern Delta Faces Worst Drought in History

Posted: 17 Mar 2016 10:07 PM PDT

  Vietnamese farmers pour rice into wind to separate low quality grains during the harvest season in Mu Cang Chai, northwest of Hanoi, on Oct. 3, 2015. (Photo: Reuters)

Vietnamese farmers pour rice into wind to separate low quality grains during the harvest season in Mu Cang Chai, northwest of Hanoi, on Oct. 3, 2015. (Photo: Reuters)

HANOI, Vietnam — Vietnam's southern Mekong Delta, the country's main rice growing region, is experiencing the worst drought and saline intrusion in recent history that has affected more than half a million people, officials said Thursday.

The drought could result in the loss of up to 1 million tons of rice, but is not expected to affect Vietnam's status as the world's third largest exporter of grain, said Ma Quang Trung, a department director at the Agriculture Ministry.

Vietnam exports an average 7 million tons a year, behind Thailand and India. Thailand too has been hit hard by the drought.

The water shortage could drive many farmers into poverty, especially if there are no rains between now and the peak of the dry season in late April, Trung said.

He blamed the drought on the El Nino weather phenomenon and excessive construction of more than 10 hydropower dams on the upper stream of the river.

Vietnamese Foreign Ministry spokesman Le Hai Binh told reporters that neighboring China has doubled the amount of water discharged from a dam to help alleviate the crisis.

Binh also said the ministry was working with China and other Mekong River countries toward sustainable use of the river's resources.

The level of inland saline intrusion was unprecedented, resulting in damage to some 180,000 hectares (444,780 acres) of paddy fields, Trung said.

The government has provided some $1.5 million in aid to farmers in the three most affected provinces in the delta, according to state media.

The post Vietnam's Southern Delta Faces Worst Drought in History appeared first on The Irrawaddy.
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